MPs, judges receive Christmas pay rise

Prime Minister John Key has been delivered a pay rise of nearly $8000 and backbench MPs will get an extra $2800 after being awarded a 1.9 per cent pay rise just in time for Christmas.

But the nation's judges are bigger winners in the latest determination from the Remuneration Authority, receiving a pay increase of 2.5 per cent, which puts the top three judicial office holders on a higher salary than Key.

The Remuneration Authority confirmed the increase today after Prime Minister John Key signalled a small rise in MPs' pay earlier this week.

The pay rise is backdated to July 1. Key's salary has risen by $7990 to $419,300 and backbenchers will now be paid $144,600.

Labour leader David Shearer's salary has risen to $262,700, an increase of $4900.

In its determination, just released, the authority said MPs' remuneration packages had not kept pace with increases in the cost of living or general wage movements.

General salaries and wages had increased by 5.6 per cent since the 2009 financial year, and the consumers price index - a key measure of inflation - had increased by 8 per cent.

But parliamentary salaries - excluding two one-off adjustments of $2000 and $5000 - had increased by only 2.9 per cent.

This year's 1.9 per cent increase "still leaves Members of Parliament receiving lower remuneration increases than the general population".